| Budget Amount *help |
¥1,600,000 (Direct Cost: ¥1,600,000)
Fiscal Year 1989: ¥300,000 (Direct Cost: ¥300,000)
Fiscal Year 1988: ¥400,000 (Direct Cost: ¥400,000)
Fiscal Year 1987: ¥900,000 (Direct Cost: ¥900,000)
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| Research Abstract |
The purpose of this study is to make clear the characters of the financial behavior that big industrial businesses show when they decide to make new investments. In the late project I did in 1985-1986, "Japanese Stock-Market during Interwar Period", I have pointed out the importance of institutional investors in 1930's. In this project, then, I investigated the relation between big industrial businesses and big stock-holders such as life insurance companies and investment trusts. It is said that during the rapid recovery from the Great Depression, the big demand of investment funds in heavy industry had to be financed against increasing amount of government bond issue, so that in 1936 money market showed the feature of "crowding-out".
But in my study about the life insurance companies, I point out that they bought stocks mainly because of high return until 1939. As the big amount of government bond issue made the government take the policy of low interest, the price level of stocks was growing high. This was one reason why life insurance companies bought stocks. Another reason was that the government bond issue could be hold by banks, which accepted great amount of deposits in those days. These facts show that at least until 1939, the market mechanism had taken the leading part in stock-market.
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